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Confiscation of seized goods - Central Excise - 5/89Extract Confiscation of seized goods Circular No. 5/89 Dated 19-1-1989 [From F. No. 208/2/89-CX.6] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Confiscation of seized goods A case has come to the notice of the Board where a Collector while adjudicating a case though held that the seized goods were liable to confiscation, but did not pass any order in regard to confiscation of seized goods because such seized goods were destroyed in fire. At the time of destruction in fire, the seized goods were lying deposited in a Government Warehouse. Since the seized goods had not been ordered to be confiscated by the Collector, the title/ownership of the seized goods continued to vest with the assessee from whom the seizure was affected. Now the assessee has come up with a request for compensation in respect of the seized goods destroyed in the fire. The claim for compensation is being examined in consultation with Ministry of Law. It has been observed by the Board that had a clear order for confiscation been made by Collector while adjudicating the case, the claim for compensation would not have arisen at all. 2. It has been directed by the Board that if the offence relating to any seized goods is proved, the Adjudicating Authority should necessarily pass an order for confiscation. The physical presence of the seized goods is not necessary for ordering confiscation. By the order of confiscation, the ownership of the seized goods is transferred to the Central Government by virtue of rule 211 of Central Excise Rules, 1944. In the instant case, since the seized goods were destroyed in fire, the proper course of action on the part of the Collector should have been to order confiscation but refrain from giving the assessee any option to redeem the confiscated goods on payment of fine because the goods had been destroyed in fire. 3. The above principles should be kept in mind while deciding similar cases in future.
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